PURCHASING AND RECEIVING INSPECTION

Transcription

1 PURCHASING AND RECEIVING INSPECTION Rev Issued To Title Date Signed By Rev 0 Management Team ###### Rev 1 Management Team ###### Rev 2 Management Team ###### Rev 3 Management Team ###### DATE SECTIONS REVIEWED PREPARED APPROVED BY First Issue ##### ##### Revised (Rev 1) ##### ##### Full Revision (Rev 2) ##### ##### Full Revision (Rev 3) ##### ##### Clause 4.1 Revised (Rev 4) ##### ##### Page 1 of 9

2 QUALITY SYSTEM PROCEDURE Procedure No. QSP/02 PURCHASING AND RECEIVING INSPECTION 1. PURPOSE AND SCOPE The purpose of this procedure is to detail responsibilities, activities and documentation when required by our clients, or by Technical Specification relating to a contract. Mechanisms displayed in this QSP are initiated through the use of our Standard Operating Procedures to ensure that purchased materials or services conform to specified requirements and that suppliers have the ability and capacity to meet the requirements of ####### Pty Ltd. This procedure also describes the method of receiving inspection and resolution of problems associated with supply. 2. REFERENCES QSP01 Contract Review and Work Planning. QSP03 Workshop and Manufacturing Control. QSP05 System Monitoring and Improvement. 3. DEFINITIONS Critical Purchases Purchases which are mandatory, indispensable or essential to fulfill customer requirements and directly affect the quality of the services/products. Non critical purchases Purchases which are required to fulfill customer requirements, but do not affect the final quality of the services/product. Basic Purchases Purchases of miscellaneous indirect goods which bear no relevance to customer requirements. Period The interval between the one Management Meeting and the next Management Meeting. Critical Tasks Any task which is directly related to, or has the potential to impact on customer requirements. Non Critical Tasks Any task which bears no relevance to any product or process for clients, either current or potential. Page 2 of 9

3 4. PROCEDURE 4.1 Supplier Evaluation Suppliers are separated into two groups: Preferred Suppliers suppliers who have an ongoing activity and a proven history of delivering quality goods/services to ######. They are the primary contact for sourcing of goods and services related to customer and business requirements. PUR/02 Preferred Suppliers List is maintained by the Accounts Department and is accessible to all relevant employees. Alternate Suppliers A secondary/back up source for supply of goods and services when a requirement cannot be met by one of the Preferred Suppliers. Alternate Suppliers can be sourced from the business accounting programme. ###### does not require a supplier (Preferred or Alternate) to hold any national or international accreditation for its Quality Management System. However, for critical purchases, the initial supplier evaluation shall include all the re evaluation requirements listed in 4.2 of this document AND verification that the supplier has a documented Quality Management System in place which includes a quality manual, quality procedures, and work instructions. The Quality Management System shall as a minimum, conform to the following requirements: An effective means of ensuring product identification and traceability throughout the various stages of manufacturing. Where applicable, a documented system which maintains records for the control, calibration, and maintenance or tools, measuring and test equipment An internal audit program for the quality system which includes a documented schedule and procedures for: o Reporting audit findings o Correcting Non conformities A documented procedure to describe the control of non conforming product A documented procedure which identifies personnel competency and identifies training requirements relative to the product/service they are providing An effective means of measuring the quality performance of suppliers A documented procedure for final inspection before the product is shipped/delivered to the customer Where practical, initial evaluation of suppliers related to critical purchases shall include an on site assessment of their capabilities, and an audit of selective areas of their Quality Management System. In lieu of an on site assessment and audit, QA/35 QMS Supplier Mail Audit, shall be utilized for this purpose. In combination with QA/35, the following research shall take place where possible to aid in an overall assessment of the company and its capabilities: Website review Peer reviews Industry review Phone interview All information obtained shall be reviewed by a minimum of two members of the senior Management team. Only after both managers are satisfied the potential supplier can fulfill the requirements related to the critical purchases, can the supplier be utilized. On receipt of the incoming goods, inspection shall take place as per section 4.4 of this Page 3 of 9

4 4.2 Supplier Re evaluation document to ensure full compliance of requirements. The addition of a new supplier and their subsequent performance shall be discussed at the next available Management Meeting. Suppliers evaluated for critical purchases are identifiable from the Preferred Suppliers List (PUR/02), through having their "Class" designated as "O & G". Specific controls related to critical purchases are as follows: Calibration Refer to QSP/06 Control of Inspection, Measurement and Testing Equipment section Raw material When requested, the supplier must provide a material certification/test report. This report must include the specification number, specified material and/or physical requirements, and the inspection/test results. A simple statement that the material meets the requirements is not acceptable. Each report must be traceable to the supplier s material, and must be signed by the organization that performed the testing Thread compounds The supplier shall ensure products conform to API RP 5A3 or ISO Supplier evaluation for non critical and basic purchases shall be as per section 4.2 of this document ###### shall retain ultimate responsibility for all products to conform to customer requirements. The Preferred Suppliers List (PUR/02) is compiled, and the suppliers re evaluated, on the basis of one or more of the following: Past performance (QA/01, PUR/03) Ability to conform to stated requirements Ability to conform to stated delivery schedules Reaction to any non conformances QA Certification (ISO 9001, API Q1) Price comparison against peers Activity level The Management Group re evaluates all the Preferred Suppliers and their status using the criteria listed above at each Management Meeting. Re evaluations are heavily weighted towards the ability to conform to stated requirements, and as such the Incoming Inspection Reports (QA/01) shall be the primary source of information. All Incoming Inspection reports shall be summarised in the Supplier Evaluation Report (PUR/03) and tabled at Management Meetings for discussion to ensure poor suppliers are recognized, and good suppliers are rewarded. Records of the evaluations and any necessary actions arising from the evaluations shall be maintained as per QSP/04 Document Control and Records Management. All suppliers (Preferred and Alternate) will be re evaluated using the same methodology regardless of their status, or criticality of purchases. The Management Group approves purchases from Alternate Suppliers based on one or more of the following: Past performance (QA/01, PUR/03) (if used previously) Ability to conform to stated requirements Ability to conform to stated delivery schedules Reaction to any non conformances QA Certification (ISO 9001, API Q1) Page 4 of 9

5 Price comparison against peers Industry recognition Locality Availability An Alternate Supplier evaluation will be based primarily on how well they have conformed to the purchase order requirements and delivery instructions, (QA/01). This will take place at the next scheduled Management Meeting. All Alternate Suppliers who have been active during the last Period will be re evaluated (PUR/03) at the next scheduled Management Meeting. Since the use of Alternate Suppliers is preceded by research and assessment prior to purchase (SOP 18) supplier re evaluations for Alternate Suppliers shall only occur if they have been active during the last period. Any unsatisfactory performance, as determined by the Incoming Inspection Report (QA/01), or based on comments with regard to co operation or price from Department heads, shall trigger an NCR (Non Conformance Report QA/05). The NCR and the supplier's resulting actions shall be evaluated by the Management Group, to help determine the supplier's status on the Preferred Suppliers List. The NCR shall be entered into the NCR Register and shall be incorporated in ######'s System monitoring and Improvement (QSP 05). In general, suppliers not satisfying the specified requirements are not to be used. However, in some cases, it may become commercially prudent to re consider the use of an otherwise unsatisfactory supplier. In such cases the Production Manager, in conjunction with the Workshop Manager, shall estimate the cost of any additional inspections and/or supervision that may be incurred and the potential detrimental effects on the contract works and program. These considerations are taken into account when evaluating offers from such suppliers. When the contracts nominate specific suppliers or subcontractors, this customer requirement overrides any requirement for ###### Pty Ltd to evaluate that source prior to placing purchase orders. 4.3 Purchasing Purchase orders for Critical and Non Critical Purchases may only be raised by Management, or the Accounts Department (at the request of Management). The Purchase order shall be electronic and its details shall contain: Supplier Originator Date Purchase Order Number Items required Quantities Required delivery date/s Quoted prices where applicable or known Any other information deemed critical for the supply of the material shall also be noted. Purchase orders for Basic Purchases may be raised by all staff through the use of the computerised purchasing system and/or soft backed purchase order books. The Purchase order details shall contain: Supplier Originator Page 5 of 9

6 Date Purchase Order Number Items required Quantities Required delivery date/s Quoted prices where applicable or known Any other information deemed necessary for the supply of the material shall also be noted. A signature from the Originator if a soft backed P/O book has been used. To ensure adequacy of specified purchasing information relative to Critical and Non Critical Purchases prior to their communication to the supplier, the supplier shall be requested for a quote on price and availability. All required information shall be included in the request. Purchase Order can only be created after review and acceptance of quote, and must contain the same content as the request for quote. SOP 18 Purchasing, presents an overview of the purchasing process. Assigned staff select suppliers by following this procedure. The Purchase Order originator shall provide a hard copy/facsimile/electronic copy of the correctly authorised Purchase Order to the supplier outlining requirements, terms and conditions of purchase as deemed necessary along with delivery requirements. Potential new suppliers offering alternative products or services are to be referred to the Management Group, for research using the procedure outlined in Clause 4.1 prior to any purchase order being issued. Where necessary, the Client may also be requested for input. The Administration Manager retains copies of all Purchase Orders, which are filed in the relevant Job file, for progressive control of supplier invoicing. The Managing Director has access to the computer network system for information on the status of purchase orders and related projects/job cost control Purchasing Supplemental The use of blanket Purchase Orders for metal surface coatings delivered by ##### Powder Coating: Where there is a consistent material flow through ##### Powder Coating Services, a Blanket Purchase Order shall be issued at the start of each month to cover all work completed for the dates listed on the Purchase Order. ###### will be invoiced on a monthly basis as per work completed to requirements. To enable a continuous process relating to the manufacture of multiple components for the mining industry the components shall be delivered to ##### Powder Coating Services in manageable batches as they are produced. Each batch of work delivered to ##### Powder Coating during the month shall be accompanied by an Inspection Release Certificate (REL/01). Each Inspection Release Certificate is identified with a unique number and shall contain all information that would otherwise be incorporated into a purchase order. If required, further specifications shall also be included with the Inspection Release Certificate. As each batch of work is processed by ##### Powder Coating Services and upon its return to the ###### facility it shall be subject to the same inspection process as described in 4.4 of this document, with the exception that the incoming goods will be Page 6 of 9

7 received using the Inspection Release Certificate instead of a purchase order. ###### will be invoiced by ##### Powder Coating Services using the blanket Purchase Order for all work completed for the dates listed on the Purchase Order. 4.4 Receiving Inspection On receipt of incoming materials, the receiving personnel identifies and inspects the goods (SOP 26 Receipt of Incoming Goods) against the applicable Delivery Docket, corresponding Purchase Order and any related documentation using an Incoming Inspection Report (QA/01). This inspection includes, but is not limited to: Confirmation of identification using P/O number, drawing No's, material markings etc. Confirmation of adherence to delivery schedule Confirmation of conformance to purchase order requirements: Correct quantities Visual examination for obvious defects. Measurement comparison to drawings where required Specified certification/documentation as required Note: For large numbers of identical items, visual and dimensional checks are required on a minimum of 5% of the total quantity. Materials passing immediate inspection are then placed in, or adjacent to the allocated Job bay or assigned storage area. Inspection of materials which include specified certification/documentation shall only be complete when such certification/documentation has been viewed and accepted by the Quality Assurance Manager or the Managing Director. No material is released for further processing until receiving inspection has been completed and goods accepted. The presence of any non compliant goods shall trigger an NCR (Non Conformance Report QA/05). The NCR and the supplier's resulting actions shall be evaluated by the Management Group to help determine the supplier's status on the Preferred Suppliers List. The NCR shall be entered into the NCR Register and shall be incorporated in ######'s System monitoring and Improvement (QSP 05). The non compliant goods will be placed in a separate area and clearly identified. Processing of the NCR (QA/05) will determine whether the goods are: Scrapped Returned to Supplier Reworked to a useable condition Refer to QSP/05 (System Monitoring and Improvement) for procedures related to the processing of the NCR. The Incoming Inspection Reports (QA/01) along with any available certification shall be forwarded to the Quality Assurance Manager. The Quality Manager shall check the available certification/documentation for completeness and content against the requirements of the Purchase Order. Information on all Incoming Inspection Reports (QA/01) for the Period shall be summarised into the Supplier Evaluation Report (PUR/03) which will be tabled at the next scheduled Management Meeting for discussion and supplier evaluation and re Page 7 of 9

8 evaluation. Upon acceptance of the material the Purchase Order (signed as accepted), attached to its corresponding Delivery Docket shall be forwarded to accounts for payment. For deliveries where the full content of the Purchase order, (or IRC for ##### Powder Coating), has not been received, but is marked, or known to be on "back order", the Purchase Order (or IRC) shall be clearly notated with such information, attached to the Delivery Docket and forwarded to the accounts department. For material NOT accepted the Purchase Order (signed and clearly marked as NOT accepted), attached to its corresponding Delivery Docket shall be forwarded to Accounts. If applicable the associated NCR number should be noted on the Purchase Order also. Where ###### or its customer intends to perform verification at the supplier s premises, the company shall state the intended verification arrangements and method of product release in the purchasing information. Records shall be maintained of such inspections as evidence of compliance to the purchasing requirements. 4.5 Sub Contract Services Where activities are outsourced, ###### shall maintain responsibility for product conformance to all specified requirements. Purchasing information shall include acceptance criteria, and where appropriate: Requirements for approval of supplier s procedures, processes, and equipment Applicable version of specifications, drawings, process requirements, inspection instructions, traceability, and other relevant technical data requirements for qualification of supplier s personnel quality management system requirements Subcontracted services are subject to the same inspection procedure (SOP 26) as purchased goods. The Machine shop Supervisor / Production Manager inspects subcontracted services such as repairs and maintenance to equipment. Unacceptable work is rejected for rectification. Acceptable work is indicated by signature on the service docket or invoice presented by the subcontractor, Service documents are filed by the Production Manager as quality records (Refer QSP/03 Workshop and Manufacturing Control) and invoices are passed to Accounts for payment. 5.0 DOCUMENTATION Request for Quotation Computer Generated Purchase Order Computer Generated for Critical and Non Critical Purchases. For Basic Purchases the soft backed Purchase order books may be used. QA/01 Incoming Inspection Report QA/05 Non Conformance Report PUR/03 Supplier Evaluation Report PUR/02 Approved Suppliers List SOP 26 Receipt of Incoming Goods REL/01 Inspection Release Certificate Page 8 of 9

9 Acknowledgement Form I, have received training and information regarding QSP/02 Rev 4 Purchasing and Receiving Inspection. I understand that if I have any questions that were not addressed in training or if I encounter any problems, I should contact the Quality Manager or General Manager for clarification. I acknowledge that I must be trained and signed off on QSP/02 prior to engaging in any set task controlled by this document and to not undertake any task for which I have not received training. I have familiarized myself with the contents of this document and understand the requirements contained within. Employee s Signature Dated / / Supervisor s Signature Dated / / Page 9 of 9